Ministry of Trade, Industry and Energy

Export and Import Trends for August 2015

    □ Korea’s exports fell 14.7 percent to $39.3 billion and imports decreased 18.3 percent to $35.0 billion in August from a year earlier, resulting in a trade surplus, for the 43 consecutive month, of $4.3 billion.   □ By product, shipments of major export items including those sensitive to oil price changes decreased, while exports of new items increased. Shipments of petrochemical and petro products, ships and automobiles, and general machinery fell. Shipments of mobile telecommunication devices and semiconductors showed an increase, as well as new competitive products such as OLEDs (Organic Light Emitting Diodes) and cosmetics. By region, exports to most regions excluding Vietnam fell. - Exports to Vietnam sharply increased from a year earlier, but those to China decreased as a result of the explosions at the Port of Tianjin and decreased demand for imports. - The unit prices of major export items fell due to a drop in oil prices and excess supply, while the volume continued to increase for the third consecutive month.   □ The unit prices of major raw materials decreased, but imports of capital and consumer products jumped.   □ ○ In August, exports showed their biggest monthly declinethis year due to the drop in oil prices, a delay in the delivery of drill ships, and the explosions at the Port of Tianjin, China.   ○ Export growth is expected to improve thanks to increased ship delivery and the launch of new automobiles from the fourth quarter of this year.   date2015-09-04

ROK President and Chinese Premier Agree to Bolster Economic Ties

      Republic of Korea (ROK) President Park Geun-hye and Chinese Premier Li Keqiang led a meeting in Beijing on Wednesday to deepen bilateral cooperation on trade, culture, and regional development.   The two sides agreed to accelerate the passage of the ROK-China free trade agreement (FTA) signed in June and seek ways to maximize its benefits by easing non-tariff barriers, such as rules on inspection and quarantine of Korean rice and kimchi.   On the cultural front, they shared ideas on liberalizing cultural exchange and promoting the joint development and distribution of arts and entertainment, including animation and soap operas. To this end, the Korea Venture Investment Corp. and the China Development Bank Capital Corp. (CDBC) signed a memorandum of understanding (MOU) to set up a $200 million fund to invest in cultural content, software and consumer goods ventures.   At a regional level, the two sides agreed to work closely together on the upcoming launch of the China-led Asian Infrastructure Investment Bank (AIIB). President Park also proposed the establishment of a Northeast Asian Development Bank as a way to further promote peace and economic development within the region.   President Park is scheduled to return to Seoul today after wrapping up her three-day visit to South Korea's largest trading partner.   To find out more about the visit and its outcomes, please check out the president's official website at . date2015-09-04

South Korea and Italy Seek to Promote Industrial and Economic Cooperation

      Moon Jae-do, the second vice minister of the Ministry of Trade, Industry and Energy (MOTIE), greeted a visit by Marco Della Seta, Italy's new ambassador to South Korea, in Seoul this week.   During the meeting held at the Foreign Ministry, the two exchanged various views on how to promote industrial and economic cooperation between their countries. date2015-09-04

MOTIE Hosts WTO/FTA Moot Court Competition

    The Ministry of Trade, Industry and Energy (MOTIE) hosted the WTO/FTA Moot Court Competition 2015 in Seoul last week jointly with Korean Society of International Economic Law.   Deputy Trade Minister Woo Taehee delivered an opening speech at the sixth annual event, which was held in time for the celebration of the 20th anniversary of the World Trade Organization (WTO).   A team from Singapore won the grand prize this year, while a team from Korea University took second place. A total of 22 teams of local and foreign college and graduate students applied for the tournament, of which 16 qualified to compete in South Korea this year.   Judges in the competition included members of the Appellate Body of the World Trade Organisation (WTO), such as Ricardo Ramirez-Hernandez from Mexico, Thomas R. Graham from the U.S., Ujal Singh Bhatia from India, and Yuejiao Zhang from China.   The WTO-FTA Moot Court is an annual competition that began in 2010. Teams have to go through two preliminary rounds before the top eight teams by score advance to the first round of knockouts.   The competition mainly comprises Korean teams, but since 2015 a limited number of foreign schools have been invited to participate each year. date2015-09-03

South Korean President Visits China to Mark WWII Anniversary, Strengthen Bilateral Ties

South Korean President Visits China to Mark WWII Anniversary, Strengthen Bilateral Ties   President Park Geun-hye left Seoul yesterday for a three-day visit to attend China's celebrations on the 70th anniversary of the end of the World War II and strengthen bilateral ties with the world's second largest economy and South Korea's number one trading partner.   Vice Minister Moon Jae-do of the Ministry of Trade, Industry and Energy (MOTIE) is accompanying President Park on the trip, along date2015-09-03

Deputy Trade Minister Woo Briefs on Key Trade Issues

      Deputy Trade Minister Woo Taehee held a regular media briefing on restoring industrial and energy cooperation with post-sanctions Iran and other key trade issues at the Ministry of Trade, Industry and Energy (MOTIE) in Sejong yesterday.   After the briefing, Deputy Minister Woo also told reporters that South Korea will consider increasing its imports of Iranian oil and condensate once sanctions on Tehran are lifted. For more information, please see a report by Reuters:   Deputy Minister Woo and Minister of Land, Infrastructure and Transport Yoo Il-ho led the South Korean delegation to visit the Islamic nation last week, accompanied by state-run oil, gas and resources companies date2015-09-02

ICT Export and Import Trends, July 2015

  □ South Korean exports of information and communications technology (ICT) products decreased by 3.9 percent to USD 13.71 billion in July from the same time a year before. Imports rose by 5.8 percent to USD 7.57 billion, resulting in a USD 6.14 billion trade surplus.   □ ICT exports decreased for the first time in last three months. Exports of semiconductors grew, while those of displays, cell phones, computers and peripherals, and D-TV decreased. Shipments of cell phones decreased due to intensified global competition and expansion of overseas production. Exports of computers and peripherals fell due to decrease in peripherals exports caused by weak sales of secondary memory units. It turned to downward trend for the first time in five months. Exports to China and the ASEAN countries rose, while those to the EU and the US declined.   □ Imports of most key items increased, except for computers and peripherals. Imports of cell phones skyrocketed due to a growing volume of foreign-made smartphones and cell phone components being re-imported from abroad. Imports from China, the US, and Taiwan increased while those from Japan, EU and the ASEAN countries   □ o South Korea’s total volume of ICT exports is relatively great compared to other main advanced countries; however, foreign conditions such as slowdowns in trades and fall in growth estimates are taking place and seem to persist. Also, July was the first month ICT exports fell since April. The only positive sign was the continuous increase in semiconductors exports.   date2015-08-30

Major Retailers Sales Trends in July 2015

  □ In July 2015, sales by major retailers, including those of department stores and convenience stores, rose from a year earlier, while those of hypermarkets and super supermarkets fell marginally.   □ By retailer, sales by department stores rose, following an increase in the sales of home appliances and overseas renowned brands. Sales by convenience stores also increased significantly for six consecutive months, following a rise in the number of convenience stores and tobacco sales, resulting in a growth of 26.2 percent on average. On the contrary, the sales of hypermarkets and SSMs decreased due to a drop in sales of non-food items.   □By product group, the sales of food, household articles, and tobacco rose while those of miscellaneous goods and clothing fell.   □ While sales by hypermarkets and department stores decreased sharply in June due to the MERS outbreak, their sales growth recovered to a three-month average before the outbreak in July. The sales of convenience stores and SSMs were not greatly influenced.   date2015-08-30

Automobile Industry Trends for July 2015

    □ South Korea’s domestic automobile sales increased 7.3 percent from a year earlier, mainly due to rising purchases of SUVs and minivans. The country’s domestic production and exports figures decreased 1.1 percent and 2.0 percent, respectively, as a result of economic downturns in emerging markets and decreasing price competitiveness.   □ : Monthly automobile production for July was 404,770 units, down by 1.1 percent. The primary cause of this was a decline in the volume of exports. This happened because the volume of exports declined while domestic sales increased. In addition, some domestic factories made significant improvements to their production lines.   □ Diesel, as well as the continuing popularity of Hyundai Motors' Santa Fe, Kia's Sorento and Carnival, GM Korea's Captiva, and Ssangyong's Tivoli.   - Sales of imported cars amounted to 23,104 units. Although this figure was up 22.8 percent YoY, the MoM figure was down by 12.7 percent.   □ : Exports of finished cars declined by 2.0 percent to 258,781 units. This was primarily due to economic weakness in emerging markets (including Russia), as well as lower price competitiveness following the devaluation of the yen and the Euro.   - Exports of auto parts fell by 10.7 percent to $2.25 billion from a year earlier. This was mostly due to sluggish demand from emerging markets.   □ YoY production of finished vehicles from January to July 2015 was down by 0.9 percent. Exports fell 3.3 percent, while domestic sales increased by 6.4 percent. Exports of auto parts fell by 4.9 percent.   date2015-08-30

MOTIE Minister Yoon Greets Indonesian Vice President

    Minister of Trade, Industry and Energy Yoon Sang-jick greeted a visit by Indonesian Vice President Muhammad Jusuf Kalla at Lotte Hotel in Seoul yesterday.   During the meeting, they exchanged views on the trade and economic cooperation between South Korea and Indonesia. date2015-08-28